NORTH HOLLYWOOD : Business Leaders Join Sewer-Fee Protest

Calling for a reduction in fees that stifle merchants, leaders of the San Fernando Valley’s major business associations lined up Friday in support of a North Hollywood merchant who is resisting a $103,000 sewer charge for a restaurant he wants to open.

“We’re taking this as a cause celebre, “ Jim Mahfet, executive vice president for the North Hollywood Chamber of Commerce, said Friday. “You’re driving business out of Los Angeles.”

“The city should be embarrassed,” echoed David Honda, chairman of the nonprofit Valley Economic Development Center in Van Nuys. “We support the little restaurant owner in his fight.”

Restaurateur Al Lucero said he wants to build a 200-seat capacity full-service restaurant at the corner of Magnolia Boulevard and Vineland Avenue, but he was stunned to learn from the developer that he would be charged a $517-per-seat sewer facility charge--or about $103,000.

The site is in the 720-acre project area of Los Angeles’ Community Redevelopment Agency, which rejuvenates blighted areas by encouraging developments that attract business. Lucero said his eatery would cost $250,000 to build and would create up to 40 jobs.

Frank Bronoff, engineer of permits at the city Department of Public Works, quoted a onetime fee of $516 per seat for new restaurants that have had no previous sewer service charge. The fees pay off the debt on bonds used to build sewage treatment plants. Businesses are also charged a $109 sewer hookup fee and receive monthly sewage treatment bills.

Representatives from the United Chambers of Commerce and the Mid-Valley Chamber of Commerce also joined Friday in support of Lucero, who has sent letters of protest to Mayor Richard Riordan and City Councilmen Joel Wachs and John Ferraro.

Erin Rodewald, press secretary for Ferraro, said the councilman has asked CRA officials to negotiate a settlement to keep Lucero’s restaurant plan alive.

Meanwhile, Lucero--who already owns four restaurants in North Hollywood--is considering opening his new venture in Burbank, where he said he could avoid such sewage fees.

“It seems to me that Los Angeles is cutting off its nose to spite its face,” Lucero said.